Sometimes events align to form a perfect opportunity. We have that opportunity today in Santa Fe real estate. What more can homebuyers ask for? The list of benefits awarded to buyers of Santa Fe real estate is growing. Never in the last many decades have they been in such a perfect situation.
After years of a soft real estate market (since 2008), Santa Fe values are extremely attractive. Buyers have been able to receive excellent values in recent sales. Buyers from Dallas, Houston, New York, Los Angeles (including film people), and Washington, D. C., all love Santa Fe and are beginning to purchase properties here with gusto.
The financial markets over the last several years have also created opportunity. Long-term interest rates are available to homebuyers at record low rates— how excellent a 3.5 percent, 30-year rate is compared to the 5 percent rates a few years ago.
In early 2016, we have a 30-year fixed rate at 3.5 percent and adjustables at 3 percent and lower. Even jumbo rates are at record low interest rates.
The political climate is also perfectly aligned. A year of political drama surrounding a presidential campaign usually translates to a very stable economic year. This means that the Federal Reserve will be reluctant to increase interest rates. So, we now have three perfect alignments: rates, values, and politics.
Buyers during the first part of 2016 have negotiated sternly with sellers. However, I predict that as the inventory of homes is reduced, values may be on the rise very soon. No one knows for sure, but really good deals may not last to the end of 2016.
Will rates rise in the future? Absolutely. It’s just a matter ofwhen. “Real estate has historically been a great investment; therefore people should have real estate as a major part of their portfolio,” said Francesca Stedman of Sotheby’s International Realty. “At Sotheby’s we currently have excellent opportunities for real estate purchases at competitive prices.”
Financial and real estate markets always change over time and this period of time in 2016 is no exception. Don’t be one of those who look back and say, “Why didn’t I buy in 2016?” The window of opportunity closes when (1) interest rates increase, (2) sellers expect higher prices, (3) the economy improves, and (4) inflation reappears. Take advantage now before the window closes.
Jim Gay was a real-estate broker for 20 years and has been a consultant to Fortune 500 companies. He is currently a broker/owner ofThe Mortgage Place, Inc. (986-9080) and can be reached at jim@ jimgayhomemortgage.com.